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Practical Actions to Combat Illegal Logging

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Practical Actions to Combat Illegal Logging Dialogue Summary A TFD Publication Number 2 2005 TFDReview Practical Actions to Combat Illegal Logging A summary of a multi- stakeholder dialogue on best practice for business and civil society 7-10 March 2005 Hong Kong, P.R. China The Forests Dialogue TFD’s Steering Committee Mubariq Ahmad Thor Lobben Manoel Sobral World Wildlife Fund Norske Skog International Tropical Timber Indonesia Norway Organization Japan Steve Bass Stewart Maginnis Department for International World Conservation Union William Street, Jr. Development (IUCN) International Federation United Kingdom Switzerland of Building and Woodworkers Switzerland David Cassells Cassie Phillips, TFD Co-Leader The World Bank Weyerhaeuser Company Gudmund Vollbrecht United States United States IKEA Switzerland James Griffiths Per Rosenberg World Business Council for Global Forest & Trade Network Scott Wallinger Sustainable Development (WWF) MeadWestvaco Corporation (Ret.) Switzerland Sweden United States Claes Hall Stephen Schenker Justin Ward, TFD Co-Leader Aracruz Celulose Private Forest Owners Conservation International Brazil/Sweden Association United States Austria Sharon Haines Amelia Wright International Paper Robert Simpson Maryland Private Forest Owner United States American Forest Foundation United States United States Matti Karjula Alexey Yaroshenko Stora Enso Nigel Sizer Greenpeace Finland The Nature Conservancy Russia Indonesia Tage Klingberg University of Gävle Roberto Smeraldi Sweden Friends of the Earth Brazil TFD’s Secretariat Gary Dunning Executive Director Linda Kramme Kevin Ogorzalek Sarah Price Yale Graduate Student Assistants Cover photo credits (top and bottom): The Nature Conservancy/Don Bason TFD Review The purpose of the TFD Review is to inform stakeholders about the dialogues and activities sponsored by TFD. For more information on topics covered in the issue visit our website at www.theforestsdialogue.org A TFD Publication Number 2 2005 TFDReview Practical Actions to Combat Illegal Logging A summary of a multi- stakeholder dialogue on best practice for business and civil society Editors: Linda A. Kramme, Sarah P. Price The Forests Dialogue 360 Prospect Street New Haven, CT 06511 USA phone +1 203 432 5966 email: [email protected] web: www.theforestsdialogue.org TFDReview Page 3 | Contents Dialogue Summary Contents Executive Summary 4 Introduction 6 Case Study Presentations 9 Government Initiatives 9 Views from Civil Society 12 Forest Industry Approaches 14 Verification of Wood Legality 17 Customer Initiatives 20 Legal Wood in the Wider Context 23 Key Issues 27 Roles and Responsibilities of Different Sectors 27 Cooperation and Partnerships 30 Stepwise Approaches 31 Social Impacts 32 Definitions and Legality Standards 34 Technical Solutions 34 Moving Forward Together 35 Dialogue Participants 37 Acknowledgements 40 TFDReview Page 4 | Practical Actions to Combat Illegal Logging Executive Summary From March 7-10, 2005, more than 120 leaders from business, civil society, government and academia met in Hong Kong to explore collaborative strategies for combating illegal logging in Asia and throughout the world. Pic 2 This meeting was convened by The Forests Dialogue (TFD), an internation- al organization which provides a forum for multi-stakeholder dialogues on sustainable forestry issues. The Dialogue included presentations and case studies on current efforts by businesses, environmental and social non-governmental organizations (NGOs), and government representatives to address illegal logging. These presentations highlighted many factors that contribute to illegal logging, including weak governance, corruption, poor law enforcement, inadequate public lands management, social conflict, unclear property rights, failure to recognize local community needs and rights, and uneven levels of commitment from the business community. Participants agreed that governments, companies and NGOs share responsibility for addressing the challenges of illegal logging. Participants agreed that business and civil society should foster the following actions: · Continue to strengthen and promote important existing alliances to combat illegal logging. · Work in partnerships to develop uniform, auditable, practical national legality standards, especially in countries with a high risk of illegal logging. · Create a simple, credible, independent and objective ratings system that can be utilized to identify high-risk countries and tree species, and possibly expanded to cover companies. · Encourage companies to use innovative wood tracking technologies, and to implement best practices to ensure that illegally sourced, harvested or traded wood does not enter their supply chains. Page 5 | Executive Summary Dialogue Summary Participants agreed on the following actions to promote increased govern- mental commitment: · Encourage strengthening of laws that protect forests and local communities that depend on forests. Strengthen law enforcement in both exporting and importing countries. · Encourage public procurement policies and voluntary partnerships with exporting countries to reduce illegal wood imports. Promote regional collaborative initiatives on forest law enforcement and governance. · Urge increased commitment on the issue of illegal logging at inter- governmental meetings and with top officials in key capitals in Asia, Europe, and beyond. · Strengthen existing partnerships with industry and civil society. Pic 3 Dialogue participant Sani Bakar addresses the group TFDReview Page xx6 | | Practical Forest and Actions Biodiversity to Combat Conservation Illegal Logging Introduction Nigel Sizer, Dialogue Co-Chair Director, Asia-Pacific Forests Program The Nature Conservancy Pic 4 Up to 30 percent of hardwood lumber and plywood traded globally could be of suspicious origin, and as much as 17 percent of roundwood traded internationally is illegally harvested. The highest rates of illegal logging activity are primarily in areas that also have the world's richest biological Nigel Sizer diversity. Illegal logging and the trade of illegally harvested wood is destroying forests in many parts of the world. This destruction contributes to social conflict and human rights abuses, costs governments billions of dollars in lost taxes, impacts biodiversity, and undermines confidence in the use of wood as a sustainable resource. Significant amounts of illegal wood enter global trade, depressing the price of wood products, and presenting unfair competition to those companies that respect the law. To explore collaborative strategies for combating illegal logging in Asia and throughout the world, from March 7-10 2005 The Forests Dialogue (TFD) convened its first Dialogue on Practical Actions to Combat Illegal Logging. More than 120 leaders from business, civil society, government and academia attended. Objectives of the Dialogue were as follows: · Raise awareness, especially among business leaders, about the seriousness of illegal logging and current strategies to address the problem. · Identify cost-effective, practical solutions to address illegal logging, particularly those that businesses can implement. · Agree on specific actions that companies, NGOs and governments can take collaboratively to implement these solutions. Page 7 | Introduction Dialogue Summary Cassie Phillips, Dialogue Co-Chair Vice-President for Sustainable Forestry Weyerhaeuser Company Pic 4 Illegal logging has significant negative consequences for global companies. Forest products companies that operate legally and pursue sustainable forest management are at a competitive disadvan- tage against companies that do not. A recent report by the American Cassie Phillips Forest & Paper Association (AF&PA) states that prices of U.S. wood products are suppressed by $500 million per year due to illegal logging. In addition, the reputation across the forest industry suffers when consumers cannot differentiate between "good" and "bad" in commodity markets. In order to limit illegal logging, forest products companies must comply with laws, require the same from their suppliers and contractors, and use "due diligence" in sourcing their wood. Significant opportunities also exist to lobby governments to adopt model laws, to improve law enforcement, and to partner effectively with NGOs. Examples include Weyerhaeuser's successful international partnerships with CARE, USAID, and the Rural Development Institute in Nepal. David Kaimowitz, Director General Center for International Forestry Research (CIFOR) World prices of forest products are 7-16% lower than true costs because of the externalities and uncaptured revenues associated with illegal logging. Banks and investors cannot easily evaluate companies for legal harvesting practices. In countries with the greatest illegal logging problems, complicated and conflicting forestry laws and enforcement authority exist both within and among different government levels. Unfortunately, few incentives exist to correct the problem because too many parties benefit financially from the confusion. Additionally, NGOs and other groups often propose rules that cannot be reasonably applied on the ground. TFDReview Page 8 | Practical Actions to Combat Illegal Logging Despite these problems, there are some hopeful signs. There is an increasing level of concern among the public, government, and business sectors about illegal logging. The banking sector could play a much pic 6 greater role because creditors are growing increasingly aware of the need to verify wood legality. Many international lending
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